China Must Push For RCEP Without Including India, Urges Chinese Think Tank

Trade & Policy

China Must Push For RCEP Without Including India, Urges Chinese Think Tank

China should be ready to push for the Regional Comprehensive Economic Partnership (RCEP) without including India, which is worried about the flow of cheap Chinese goods into the country, a Beijing-based private strategic think tank Anbound, has stated in a recent report.

The think-tank’s report stated that the RCEP is of more strategic global significance after the US exited the Trans-Pacific Partnership (TPP).

The RCEP is a 16-nation trade pact which includes the Association of Southeast Asian Nations (ASEAN) along with China, Australia, India, Japan, South Korea and New Zealand.

The report states that though excluding India would diminish the value of the agreement, China should continue speeding up RCEP negotiations, because enhanced co-operation with ASEAN, Japan, South Korea and Australia is of “strategic importance” for China.

The report stated that India is reluctant to promote the RCEP because it is worried about cheap Chinese goods affecting its manufacturing industry.

“First, India is worried that after signing the agreement, it would not be able to prevent cheap Chinese commodities from flowing into the country, which would endanger its domestic manufacturing industry,” according to the report.

It said that India is worried that domestic companies would be less competitive than foreign enterprises after opening the market, especially in the textile sector.

India is worried that RCEP clauses on intellectual property and services would be disadvantageous to it, the report stated, adding that India is still worried about the lack of competitiveness of its local enterprises.